Many people believe as they get older and become more financially independent, their need for life insurance decreases. You may not realize that life insurance can provide more than financial protection for a family to maintain its standard of living should a parent die prematurely. It can also be used to help pay taxes that may arise upon death on a growing estate, ensuring as much of the estate as possible is passed on to beneficiaries.

Quite possibly, the largest burden on your estate could be the taxes owed on the assets you've worked hard to accumulate. You may not use all of your assets during your lifetime and might hope to pass the nest egg on to your heirs upon death. You may wonder about the safety of your investments and worry about the taxes owed on death and how it could seriously reduce the value of your estate. If you are already in a high-marginal tax bracket, paying the highest tax rate on your investment income, this can drastically reduce your actual return on investment.

What steps can you take to limit this burden? Among the solutions tailored to meet your specific needs that may be presented to you, a permanent life insurance policy may substantially increase the value of the capital that is ultimately transferred to your beneficiaries (on the death of the second insured). And, unlike other investments resulting in taxable growth, life insurance provides tax-advantaged accumulation that passes tax-free to your named beneficiaries upon death.

While you are alive, permanent insurance can also provide you with a source of income. These policies have cash values that accumulate on a tax-advantaged basis and can be used for retirement purposes or to provide liquid savings or to fund long-term care needs for adult dependents. The cash value that may be available depends on how the policy is funded and on tax laws in effect at the time funds are withdrawn from the policy.

You need to take the time to determine a solution that is right for you. It is important to choose a plan that can change over time as your needs change. The cost will depend on your health and lifestyle, your age, gender and which policy you choose. Together with your help, we can determine a solution that is right for you.

-Russ MacDonald
Heritage Insurance Ltd., (306) 631-9738

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Make sure your family is protected. Call Heritage Insurance, Ltd at (306) 693-7640 for more information on Moose Jaw SK life insurance.

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